Dole Food: ISS backs move to go private

AnnaPrior

Dole Food Co.
DOLE
said Friday a proxy-advisory firm recommended shareholders support the company's agreement to be acquired by Chairman and Chief Executive David H. Murdock when a special meeting of stockholders to approve the merger is held Oct. 31.

In a report, Institutional Shareholder Services Inc. gave its recommendation to vote for the proposed transaction "in light of the meaningful premium offered to Dole's unaffiliated shareholders," said the fruit-and-vegetable producer.

Dole said that it expects to close the transaction on Oct. 31 or the following day, assuming receipt of the requisite shareholder vote.

Dole in August agreed to be bought by Mr. Murdock in a sweetened $1.2 billion deal, and didn't receive any alternative offers during the "go-shop" period.

The company in June had formed a special committee to consider Mr. Murdock's offer. The deal is valued at $1.6 billion, including the assumption of debt.

The 90-year-old billionaire first took the California company private in 2003 for $2.5 billion and then took it public again in 2009, raising $46 million by selling shares at $12.50 each. That gave the company a value of just more than $1 billion at the time.

Dole launched a strategic review of its business in May of last year after reporting a slump in profit. The company said at the time that potential actions could include a full or partial separation of one or more of its businesses, potential spinoffs, joint ventures and sales transactions.

Dole sold its world-wide packaged-foods and Asia fresh-produce businesses to Japan's Itochu Corp. (ITOCY, 8001.TO) in April for about $1.69 billion in cash.

Shares closed Friday at $13.73 and were flat in light after-hours trading. Through the close, the stock has risen 20% since the start of the year.

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